In Australia, provision of healthcare is done by government and private institutions. The ministry of Health in Australia has the responsibility to administer policies relevant to national policies. The current system used in regulating and execution of Health services in Australia is known as Medicare. It was instituted in 1984. Medicare is funded differently by the citizens of Australia, for example, high income earners in Australia fund this scheme by 1% as an additional levy. Also, a total of 1.5% income tax levy is contributed to this system by the national revenue. This essay focuses critically on various aspects of the Australian Healthcare such as Medicare and other institutions used to fund and provide healthcare services in Australia.

The health system used in Australia is arguably the world-class, especially because of its effectiveness and efficiency. A mixture of both private and the public funding and service providers forms the health system. A body of regulatory instruments also comprises the system of health care used in Australia. These compositions include profit and nonprofit voluntary agencies, the government of Australia (vested with the responsibility of developing health policies, funding and regulation) and a body of private practitioners, which usually include medical specialists and consultant physicians (McMurray, 2011). Another essential element that makes the Australian system a world class health system is the existence of State and Territory local governments. These local governments have a responsibility for proper delivery and management of the public Health of Australian citizens. They should also maintain a warm relationship with most healthcare providers in Australia and regulate health professionals and private hospitals.

The funding of the health system used in Australia is strategic. This is because it involves a composition of three main national subsidy schemes which include medicare, pharmaceutical benefits schemes and the 30% health insurance rebate. Medicare and the pharmaceutical benefits scheme cover the medication of every Australian citizen. They subsidize their private medical services payment and cover for their large portions of prescription medications. Also, individuals make contributions through taxation and the medicare levy which has an aim to enhance financing of medication of Australian citizens. In fact, the National Health Care funding has a fundamental goal of providing every Australian, regardless of their personal or religious affiliation, access to medication at subsidized costs or seemingly no cost at all. They should also present choices through the Medicare levy and taxes, in delivery and financing.


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In Australia, Medicare funds Health care so that Australians freely access medical care. A subsidized out of hospital treatment also exist as it is all provided by their health system, Medicare. A number of Health Insurance Organizations usually fund the private health system. Medibank private is the greatest health insurer, and it is owned by the government. This organization operates as a business premise of the Australian government. In Australia, there are also private health insurance firms whose key aim is to make a profit (Willis, 2008). Nongovernmental organizations, such as the HCF health Insurance, play a fundamental role in funding heath services in Australia. The terms and conditions within the operation of private health insurance have a legislative instrument that governs them. This tool is the private health Insurance act of 2007. This legislation addresses the complaints exposed by the health funding private insurances.

In the Australian private health systems, premiums do not vary depending on the current state of health of a person or a person’s medical history. Instead, the private system operates in a manner known as “community rating”. Funds only become active after 12 months waiting period for only the medical conditions that usually exist before the six months which normally end on the day the person benefited from the Insurance. Private Health care Insurance represents a substantial percentage of the total funding (probably 11%). This Insurance is usable in both private and public hospitals by patients depending on whether they prefer to be private patients or not. Australian private health Insurance allows patients to have a variety of doctors and hospitals for treatment, just like it is in other countries. Some services in private insurance also exist within the boundaries of Medicare. These services include dental services, optical and physiotherapy.

The government of Australia also provides subsidized premiums, up to 30% for those who have subscribed to private insurance. The Australian government has developed several incentives aimed at discouraging the citizens from using private health insurance. These incentives include Life time Health Cover and Medicare Levy surge. This health system used in Australia has suffered a lot of criticism (Taylor, 2007). Critics argue that this system is an extremely heavy load to the Australian taxpayers because it is a mixture of public and private systems.


From the foregoing, it is undoubtedly evident that Health in Australia is well taken care of by the Australian government. The public receive quality health care that is well financed by both public and private entities. Perhaps, third world countries should consider incorporating the health policies used by the Australian government. This would improve the state of Health care, and it would be a positive step towards achievement of the world’s millennium goals. Bearing in mind that medical care is a basic human need, care should be taken to ensure stability of the health departments in any country. The health care in Australia should also be improved by the responsible departments considering that there is always a room for improvement for any organization. These improvements should be in line with the ideal provisions of the World Health Organization in its parameters.

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